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2016-02-02

Basware: Basware's refined strategy for 2016-2018

Basware Corporation, stock exchange release, February 2, 2016 at 08:40

Basware's refined strategy for 2016-2018
Basware is the market leader of the fast growing market of networked
purchase-to-pay (P2P) and e-invoicing solutions. Automated, real-time
solutions including innovative financing services for cash flow and working
capital management differentiate Basware positioning it to become the largest
business commerce network in the world. With reaching a tipping point in its
transition from a license-dominated software company to offering cloud and
network-based services, the refined strategy for 2016-2018 will enable
Basware to capture an increasing share of new markets and accelerate the
expansion of its P2P and e-invoicing solutions and new financing services for
organizations of all sizes.

Starting point for the next phase of growth

Basware has successfully managed to leverage its superior integrated offering
to achieve its current status of largest e-invoicing network operator and
largest invoice automation solution supplier in the world. Basware is proud
of the milestones the company has achieved over the recent years resulting in
key competitive differentiators:

* An established and loyal customer base underpinned by market-leading P2P
and e-invoicing solutions and services, enabling the growth of recurring
revenues;
* Over 1 million organizations, connected via the open and global Basware
Commerce Network, using Basware's solutions and services in over 100
countries;
* Large amounts of e-invoices and other business documents sent and received
across the Basware Commerce Network accumulate vast amounts of valuable and
value-added data. This data lays the foundations for Basware's new
Financing Services, with significant growth potential; and
* Streamlined, customer-centric and globally operating organization, with
strong presence in all key growth markets.

Customers now expect best-in-class, highly automated cloud-based services for fully digital transactions rather than legacy, manual and bespoke software solutions. Basware expects the demand for its software-as-a-service (SaaS) to continue to grow in all segments, and especially in the small and medium-sized businesses (SMB) segment.

* To address this trend, Basware has transformed its business model during
the past four years from license-based to a SaaS model catering to both
direct customers and outsourcing providers alike. This shift has resulted
in a continuously increasing share of recurring revenues. During this
transformation phase, Basware has also taken steps to simplify its business
model in order to improve customer experience as well as the scalability of
the business.

* Highly automated P2P solutions and e-invoicing enable private and public
organizations of all sizes to realize the value of data and achieve new
levels of flexibility for cash flow and working capital management. Basware
has developed its Financing Services offering to address this vast
potential. Basware expects the demand for these innovative services to
rapidly grow globally, with penetration levels increasing in large markets
such as the UK, the US and Germany. At the same time, public sector
e-commerce initiatives, launched particularly across the EU and the US,
will drive the digitalization agenda and the further adoption of
e-invoicing.

Refinements to strategy

enabling priorities and investment

Basware's vision to become the largest business commerce network in the world
remains unchanged.

Basware's strategic goals by 2018 include the following:

* Annual net sales in the range of EUR 220 to 280 million;
* 250 million of processed transactions;
* Increasing the share of recurring revenue to over 80 percent; and
* Continue to improve underlying profitability (excluding growth related
investments) over the period.

The refined 2016-2018 strategy will now focus fully on operational execution
and making the necessary investments to accelerate the crystallization of
this vast potential.

Basware will accelerate operating investments that will be mainly targeted at:

* Expanding the company's sales and marketing as well as go-to-market
capabilities,
* R&D capability and other investments aimed at shortening significantly the
implementation times of Basware's solutions and services with new and
existing customers, and
* Supporting the development and tapping the additional opportunity provided
by Basware's new Financing Services offering.

Within sales, Basware plans to increase its direct sales force, with a key
focus on the UK, the US and Germany. In addition to the effort on direct
sales, the company will also continue to focus on establishing new types of
partnerships, ranging from accounting service providers and various other
cloud solution providers to business process outsourcing providers, and
financial institutions. As part of its strategy, Basware will also extend its
go-to-market model to better address the SMB segment and will continue to
innovate in value-added services leveraging the Basware Commerce Network and
its data.

The company will further improve profitability as a result of the ongoing
efficiency and streamlining initiatives. These initiatives include the
continuous cost of sales reduction of Basware's cloud-based business,
increasing use of online tools and services to selectively automate demand
generation and sales activities, as well as various supporting process
simplification and scalability related actions.

The organic growth which is the key focus will continue to be supported by a disciplined acquisition strategy, aimed at strengthening the company's position in its key markets.
For more information, please contact:

Esa Tihilä, CEO, Basware Corporation
Tel. +358 40 480 7098

Distribution:

Nasdaq Helsinki
Key media
www.basware.com/investors

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Basware via Globenewswire

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